Apple Shifts App Distribution for EU Users with iOS 17.5 Beta Update

Apple Inc. AAPL has unveiled the inaugural beta version of iOS 17.5, revolutionizing how individuals within the European Union access applications by allowing direct downloads from developer websites.

EU’s Digital Markets Act Influence on App Distribution

What Happened: This transformative feature, integrated into the recent iOS update, aligns with the European Union’s Digital Markets Act (DMA). Apple’s decision to permit app distribution through alternate marketplaces in the EU sets a new precedent.

Initially, Apple confined app accessibility exclusively to these marketplaces; however, the company later disclosed plans to support direct downloads from websites maintained by developers.

Criteria and Implications for Developers

To qualify for this groundbreaking opportunity, developers must meet specific prerequisites, such as membership in the Apple Developer Program for a continuous two-year period. Additionally, they need to host an app that garnered over one million initial installs on iOS within the EU in the preceding year.

Authorized developers will receive an API from Apple, which will enable them to showcase their apps for web downloads, a development initially brought to light by Macrumors.

Financial Implications and Market Dynamics

Crucially, apps procured through this method will not attract Apple’s conventional commission fee but will instead incur the €0.50 Core Technology Fee, presenting a new financial landscape for developers.

Why It Matters: Apple’s strategic shift is part of a broader series of modifications to its app distribution protocol within the EU. In January, the company introduced app sideloading exclusively for EU users with the release of iOS 17.4 beta. Subsequently, in March, Apple announced plans to enable app downloads directly from websites, subject to specific stipulations.

These groundbreaking changes have been instigated by the DMA, a legislative initiative designed to foster equitable competition and enhance consumer choice within the digital marketplace.

While these overhauls benefit both developers and users alike, they also potentially pose a financial challenge for companies like Meta Platforms Inc., translating into significant annual payments to Apple.